Narva apartment associations Court decisions

Ending services to save money did not remove the agreed notice period or payment for it.

KÜ Tiimani 4 (now — Narva linn, Soldina tn 4 korteriühistu). Service provider XX sought two months of accounting fees, compensation for shortened notice and late-payment interest from KÜ Tiimani 4. The appellate court reversed the first-instance dismissal and allowed the claim. The agreement was a mandate contract: ongoing accounting is a continuing service rather than production of a distinct result. There was no employment contract between the parties. The association’s notice cited saving money as its reason. Breaches justifying termination without the agreed notice were not proved. Later demands for documents and a contract with a new accountant did not establish grounds for the notice already sent. The association’s alleged losses were not established either. The contract required 60 days’ written notice. The association’s refusal of further services before that period expired did not release it from the duty to pay. The court upheld two months’ fees and the claim for the remaining month, assessing the amount by established monthly practice and comparable services. Payment for services, compensation for the remaining notice period and accrued late-payment interest were awarded. Further late-payment interest until performance was neither sought nor awarded. Costs in both instances were reduced to 375 euros in view of the claim value and ordinary complexity: a 175-euro fee and 200 euros for legal assistance. Translation costs lacked documentary proof. Actual payment of the award was not established.

The first-instance dismissal was reversed; the claim and appeal were allowed. The association must pay for services, the remaining notice period, fixed late-payment interest and reduced costs.